Correlation Between Intershop Holding and Allreal Holding
Can any of the company-specific risk be diversified away by investing in both Intershop Holding and Allreal Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intershop Holding and Allreal Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intershop Holding AG and Allreal Holding, you can compare the effects of market volatilities on Intershop Holding and Allreal Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intershop Holding with a short position of Allreal Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intershop Holding and Allreal Holding.
Diversification Opportunities for Intershop Holding and Allreal Holding
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intershop and Allreal is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Intershop Holding AG and Allreal Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allreal Holding and Intershop Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intershop Holding AG are associated (or correlated) with Allreal Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allreal Holding has no effect on the direction of Intershop Holding i.e., Intershop Holding and Allreal Holding go up and down completely randomly.
Pair Corralation between Intershop Holding and Allreal Holding
Assuming the 90 days trading horizon Intershop Holding AG is expected to generate 1.44 times more return on investment than Allreal Holding. However, Intershop Holding is 1.44 times more volatile than Allreal Holding. It trades about 0.25 of its potential returns per unit of risk. Allreal Holding is currently generating about 0.16 per unit of risk. If you would invest 12,700 in Intershop Holding AG on November 30, 2024 and sell it today you would earn a total of 1,140 from holding Intershop Holding AG or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intershop Holding AG vs. Allreal Holding
Performance |
| Timeline |
| Intershop Holding |
| Allreal Holding |
Intershop Holding and Allreal Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intershop Holding and Allreal Holding
The main advantage of trading using opposite Intershop Holding and Allreal Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intershop Holding position performs unexpectedly, Allreal Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Allreal Holding will offset losses from the drop in Allreal Holding's long position.| Intershop Holding vs. Allreal Holding | Intershop Holding vs. Mobimo Hldg | Intershop Holding vs. PSP Swiss Property | Intershop Holding vs. Swiss Prime Site |
| Allreal Holding vs. PSP Swiss Property | Allreal Holding vs. Swiss Prime Site | Allreal Holding vs. Mobimo Hldg | Allreal Holding vs. Helvetia Holding AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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